The service shutdown in Japan follows in the wake of the collapse of FTX and adds more uncertainty to the global crypto market.
Kraken, the US-based cryptocurrency exchange and bank, indicated that it is closing its exchange services in Japan.
In a blogpost issued Wednesday in Japanese and English, the company said that current market conditions in the country combined with a weak crypto market globally were the main reasons for its decision. Given that, it was not in a position to justify the resources needed to grow the business.
The company added that it would take steps to deregister itself from the Japan Financial Services Agency (JFSA) effective 31 January 2023.
It also indicated that it is adhering to JFSA’s guidance and that clients will have time until the date of deregistration to withdraw fiat and crypto holdings from its platform.
Clients can withdraw assets to an external wallet or liquidate their portfolios and transfer the remaining Japanese yen to a domestic bank account during that time.
On the 9th of January, Kraken indicated that deposit functionality would be removed from accounts, although trading functionalities will remain. Withdrawal limits have also been removed to ensure that all assets can be transferred.